Morning: Gold Price at the Lowest since October 17 loosing 3% in 4 Sessions

Gold hit a 3-1/2 week low on Tuesday, dropping for a fourth straight session as the dollar increased and expectations rose that the U.S. Federal Reserve will shortly scale back monetary stimulus program.

Gold has lost nearly 3 %over the past four sessions, as facts and figures on powerful U.S. financial and occupations development increased speculation that the Fed will taper its $85 billion-a-month bond-buying program known as quantitative easiness by the end of the year.

Macquarie analyst Matthew Turner said: “Gold’s inverse relative against the U.S. dollar seems to be at its strongest when there is no other macro or basic driver for the market.”

This is likely to continue until the Fed points its next stimulus move, he added.

Spot gold was at its lowest since Oct. 17 at $1,276.24/oz. in previous trade. It was down 0.1 %at $1,281.00 by 11:19 a.m. GMT. Technical support was between the $1,277-$1,269 levels, analysts said.

Comex gold futures for December delivery were down $0.70 to $1,280.40/oz.

The U.S. dollar rose 0.3 % against a basket of currencies, edging back in the direction of a two-month top hit on Friday.

The 10-year U.S. yield increased towards the two-month high at 2.78 %.

As gold buys no interest, the increase in returns from U.S. bonds and other markets are glimpsed as contradictory for the yellow metal.

Gold has fallen almost a quarter this year on expectations that the Fed would slash back on its bond buys in 2013, so any delay could provide a bullish outlook to prices.

Although, gains could be kept in ascertain by the flaw in technical charts and weak physical demand.

Gold’s fell underneath $1,300 on Friday has failed to attract purchasers in Asia as customers anticipate gold prices to weaken farther. Dealers state purchasers would arrive in as charges fall towards $1,200.

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